Ghana: Weak currency fuels inflation

GHANA’S annual producer price inflation rose to 19.5 percent last month from a revised 19.2 percent year on year the month before, driven mainly by the weakening of the local currency and unstable power supply, the Ghana statistics office said yesterday. The figure, which is high compared with average inflation in the region, is an indication of fiscal challenges facing its economy. Ghana began a three-year aid programme worth $918 million (R11 billion) with the International Monetary Fund last month to tackle its growing public debt and high inflation. Ghana is grappling with crippling power cuts which the government has blamed on inadequate generation capacity in past years. – Reuters